View more on these topics

Pilling CTF deal for IFAs pledges no cross-selling

Stockbroker Pilling & Co is offering to set up agency agreements for IFA clients who are interested in the fund of funds’ stakeholder option on its child trust fund.

Pilling says IFAs with clients who invest directly in CTFs offered by high-street banks could find that the banks cross-market other products to their client base. Although no commission is offered to IFAs by Pilling, it will not send information about its services and products to IFA clients under agency agreements.

The Pilling CTF uses SG Asset Management’s global managed fund, a fettered fund of funds investing in SGAM’s range of unit trusts and Oeics. The fund was chosen because Pilling feels an existing fund with a visible track record is preferable to launching a new fund. Before deciding on SGAM, it screened the fund universe according to the Government’s criteria for the stakeholder option. This involves discarding funds that do not fall within the charging cap and those which are not single-priced. Pilling could not use the multi-manager funds it considered attractive as these were not single-priced. It also found that many fund management groups were not interested in supporting a child trust fund product because of the low profit margins involved.

Pilling & Co investment manager Alistair Hodgson says: “IFAs get a raw deal out of this market as there is no profit margin in the product . Any commission that may be payable is not worth writing home about. What we are saying is we have not got a magic wand but we can set up an agency agreement so the IFA’s clients will not be cross-marketed to by us.”


Montpelier Group in Malaysian expansion

Montpelier Group is continuing to expand in the Far East by joining forces with Malaysia-based IFA Expatriate Financial Services.

Rental health

Increasing professionalism in the buy-to-let market supp- orts lenders offering rental calculations using low payment rates, says Pink Home Loans associate director Dev Malle


News and expert analysis straight to your inbox

Sign up


    Leave a comment